If we buy a foreclosed property, then a third party that has bought the rights of redemptiongoes ahead and redeems it, what do we stand to loose?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If we buy a foreclosed property, then a third party that has bought the rights of redemptiongoes ahead and redeems it, what do we stand to loose?
I am looking at purchasing a foreclosed property in the state of Alabama. A third party has bought the rights of redemption. If we purchase this property, then the third party exercised their right to redeem it, how much money would we loose? I would assume closing costs, moving costs, etc. But what about our downpayment or the difference in our purchase price ($245,000) and price of redemption($160,000)?
Asked on May 8, 2012 under Real Estate Law, Alabama
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
I suggest that you consult with a real estate attorney after reading the answer to your question. First, if you purchase foreclosed property subject to the rights of redemption of a third party, if the third party redeems the foreclosure, you get back all that you paid for the property (down payment, improvements and the like) plus the allowed rate of return for interest in your state.
Before you make the purchase, sit down with an attorney in the county where the property is located and get the full legal picture of what you may be getting into if you purchase the subject property where someone may have the right to redeem the purchase of it.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.